Commodum Essay Example | Topics and Well Written Essays - 6750 words

Commodum - Essay Example In 2008 Blair Connolly, Inc. was issued U.S. Patent Number 7,413,250 for the utility of a back support design. â€Å"Commodum† Latin for â€Å"comfort† is the first ergonomic office chair created that utilizes the patented back support design. The patent gives the company a competitive advantage over competitors because they have a novel design that cannot be imitated in the United States. The product will be strategically positioned as a high-end ergonomic office chair and promotional methods will highlight emotional benefits including: comfort, relaxation, vitality, status, and luxury. Commodum will be introduced using a skimming pricing strategy and consumers’ will most likely consider the product a high involvement purchase. Direct marketing will highlight important attributes such as service, quality and warrantee to help reduce cognitive dissonance often associated with high-involvement purchases. The ergonomic furniture giants in the U.S. primary consist o f two companies Herman Miller and Steelcase and have the two best ergonomic chairs on the market. The Herman Miller â€Å"Aeron† is considered the â€Å"gold standard† in ergonomic seating, which everything else is compared to it. The Steelcase â€Å"Leap† is more luxurious than the Aeron and has a slightly higher price. These companies have targeted the business office furniture segment and have been very successful. It would be more difficult for Commodum to penetrate the business office furniture market and would be impossible to compete in terms of price. Also, with the current economic environment businesses will be less likely to make major purchases on a new product that do not have a brand reputation established. However, home furnishings consumers are less aware of brand name and are a better market segment for Commodum to target. More specifically, Generation Xers and Baby-boomers are the best target market for the company because they spend more on ho me furnishings than any other generations. Baby-boomers and Xers are more likely to have discretionary income and home furniture purchases have been found to be discretionary in nature. Throughout history, there has been a correlation between furniture purchases and life stages, including: getting married, buying a house, children moving out and retiring. Baby Boomers and Generation Xers are experiencing life a stage associated with home furnishings consumption and makes them a powerful target market for Commodum. Additionally, recent socio-economic trends have created a growing home office furniture market and many Baby Boomers will be working longer than expected and will be using home offices more frequently. Technological advancements have led to a â€Å"hiving trend† and consumers are using their home as hub for communication. In conclusion, there is great opportunity for Commodum to succeed in the growing home office furniture Market, but will not be without barriers. H erman Miller and Steelcase may focus more promotional efforts on the home furniture consumer and may be hard to compete with. However, the novelty of the patented design makes the product unique and is the key component to strategy. With strategic positioning and promotion efforts San Diego should be a good market to launch Commodum. Historically, the housing market has been a market driver for home furnishing consumption and if the company can time the launch of Commodum with the housing market recovery it could lead to a lucrative business opportunity. 2. Table of Contents 1. Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦1 2. Table of Contents†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 3. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 3.1 Background of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦

Case study of Cherie Cosmestics Ltd Elegante Division

Of Cherie Cosmestics Ltd Elegante Division - Case Study Example or a company’s top level management to put into place reliable systems that can effective coordinate communication process and other important aspects of management. The communication function of effective management is responsible for creating reliable communication channels as well as structures that can be followed by all company workers. It is important to understand that all branch managers in a large company work towards a similar goal, that of success and increase of market share, for this reason, there is a need for collaboration and consultations among the managers. However, it is important that all these consultations and collaborations have to follow certain laid down procedures to avoid conflict of interest and the need to outdo each other at the expense of company goals and objectives and the spirit of good governance. Communication is an important function of any business activity, it ensures that directives are set effectively and implemented by company workers (Kuhn 2005). Effective communication has been the chief cornerstone of any development in any organisation; in fact, it is what enables company and organizational managers to carry out their basic functions and duties in the organisation. Communication skills, whether formal or informal have always been cited as the basis for the success of any business activity (Cheney 2007). Systems that do not have poor communication mechanisms often end up having misplaced priorities with people doing what they feel is pleasant to them and not what is stipulated in the company’s effective practice. The problems affecting the management function at Cherie Cosmetics Limited can be traced down to a breakdown in the communication process. In the first place, the company’s vice president has not taken steps to address the challenges and bring about sound management systems and communication in the company. There appears that some managers like Heather have the passion of working in this company and